In the expansive sea of Delegated Authority and Bordereaux Management, major market changes are imminent in the London Market. While the insurance industry as a whole is known as slow to adopt change, historically the London Market has been notorious for its snail’s pace, if not outright adversity, to change.
The advent of standardisation and centralisation to be implemented for delegated authority business is forcing change sooner rather than later, across the Lloyds Managing Agents (and their London Market Company), and potentially the non-Lloyds London Market Companies.
Whether badged as DA SATS (Delegated Authority: Submission, Access and Transformation Solution) or Charles Taylor InsureTech, both will be underpinned with the Charles Taylor Tide bordereaux solution as the unifying technology behind Lloyds’ efforts to simplify the flow of data between coverholder, brokers and carriers when it comes to delegated authority business.
The effect of this change to delegated authority business will be felt around the globe. Coupled with the London Market Target Operating Model (LM TOM) program, Brexit, and Lloyd’s new Brussels subsidiary (which will be the hub for all Lloyd’s European Delegated Authority business via Tide) there will be further change for carriers and brokers, as well as the circa 3500 global coverholders, MGAs and TPAs.
With this degree of change will come a level of uncertainly, whether it be the length of time it will take for industry-wide standardisation and centralisation to be fully workable/adopted, or the technical challenges which may arise for all parties involved – including producers, London Market placing brokers, the managing agencies or carriers. One thing is certain, it will be enlightening to observe how these changes develop and affect the stakeholders in the London Market and elsewhere.
History has proven that with change there will always be the unknown and, more often than not, unintended consequences. Remaining flexible and anticipating potential disruptions are key to weathering through the delegated authority changes to achieve a successful outcome.
This is a time when a company may want to consider partnering with an expert or niche specialist providers, such as OWIT Global, to help navigate the changes. Options might include replacing an antiquated solution which is no longer capable of keeping up with the market, or just enhancing an existing solution by implementing tailored micro-services to ease or resolve any potential burdens that may arise. A common challenge that many will need to address is the data disconnect requiring data amalgamation and transformation, and/or cleansing (including the application of the binder business rules) to provide clean data to Tide.
Whether the plan is to go it alone or partner with someone to help with the imminent changes, the goal should be to plan and execute sooner rather than later to ensure smoother waters for future sailing in the sea of Delegated Authority.